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1/15/2015 7:26AM

Swiss Franc Soars After SNB Scraps Currency Cap

The Swiss franc rocketed beyond parity with the euro on Thursday after Switzerland’s central bank stunned markets by scrapping its long-standing cap on the strength of the currency. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

what a shocker that Switzerland is not just waking up the sun for bond that has ... landed on the body of the brain ... this is a limit of its previously pledged to defend that the public dissemination many saw this coming that ... has gone through the Red ... Bull has hinted to me it was kind of hold on ... to the many ... many babies on this coming ... it's a it's a very curious development and ... no one ... so it ... fits in with the usual central bank sitting of Jenny going the right direction this was ... a complete change ... in stance ... announced the surprise pretty much everybody in pays any attention to the Swiss National Bank yet ... I mean ... after all is well in two thousand and eleven as a way to try to keep the brand name of the week to stop inflation from ... getting a pose with it difficult for them ... what was I think is this that they feel like ... the couple bits ... well ... yes in the statement ... sort of indicates that ... what's changed is that things to stabilize things are getting faster um ... that the Frank is no longer as severely overvalued as it used to be ... um a lot of people reading that statement I find it difficult to understand ... another theory about what's going on is is to do with the euro zone it's been depreciating since May ... um it's like to go ... quite a bit further ... if and when the ECB does more quantitative easing or ... village has a new form of quantities in ... January the twenty second or maybe you're in March ... so ... the supply of euros increases significantly the Kurds folds out the expense of that effort core ... but the ... SNB ... to defend the sleeping bag it's great or greater ... the question is at what point do they think they can get out of ... yes so with that sort of sounds like ... they're taking that you know that it's it's I bet that they don't want to double down on ... yes it may be taking a hit be European CPI numbers they've seen recently they think the ECB isn't calling it an optimism and faith that once on the wrong side of that become one of the siphon away ... national yes I mean the repercussions for that I it's political foes anybody hit the shelves this ... sweet is in everything because the guys at the center front ... that was what the impact is ok and that even ... I made this well discussed reticent and maybe that is that the ECB did ... this new one thing but the ski resort ... Morgan said that Yelp's knows which is that they are in the quarter from a to do something ... but oh yes the manner in which they don't this has exposed many other agents banks ... there is to to attend to very dark large losses ... of ... other central banks in Europe are not ... looking at their currencies depreciate across Eastern Europe their big big depreciation interest is sporting ... the euro itself has accelerated its net buying of being ... booked up and there is a potentially significant buyer of both the euro has to say it's not there yet I forget ... um ... so ... you know that if there's a lot of what they call negative spillover in this potentially are like a mention ... of Alexa did some some of the charm offensive in advance that this that the Essen be the most of the bunch in the center by forecasting Center by slumping boring ... nothing predictable ... about extend into it ... the mission aisles and briefly dipping into the top of the SNP had the same ... absolutely yes I mean you know all the signals they been sending was work work to do with comes news that we will continue with this with this policy ... um to abandon that ... so suddenly so abruptly ... possibly two to the damage of of of of other factors and yet I mean that the people he will ... think twice about taking the Essen these were doing something in the future yes I'm addicted to beat the Rams know that I'm not